Ola Electric Reports Net Loss Of ₹495 Crore

Ola Electric has been ridden with controversies for quite some time now. Its S1 Pro scooters have left customers infuriated, coupled with the lack of action from the company to sort out these issues, have further worsened the situation. Now, all those lack of initiatives are finally coming to the fore, for the company just reported a net loss of ₹495 crore in Q2 FY25. Although, it is a slight improvement from the ₹524 crore loss it recorded in the same quarter last year. But when you compare it with the loss from last quarter, when it recorded ₹347 crore loss, the latest report puts the marque in the red zone.

(Also Read: Ola Electric Ordered to Refund ₹1.64 lakhTo Customer Over Defective S1 Pro)

Revenue in the second quarter increased by 39.1 per cent year-on-year to ₹1,214 crore, up from ₹873 crore in the same quarter last year. The company's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) also saw a narrower loss of ₹379 crore, compared to a loss of ₹435 crore in the year-ago quarter.

However, Ola Electric's gross margin for the quarter stood at 20.3%. The Bengaluru-based EV manufacturer delivered 98,619 units, representing a growth of 73.6 per cent compared to last year. The mass-market portfolio, priced below ₹1 lakh, continued to drive momentum, growing by 15 per cent sequentially, while the premium portfolio remained a significant revenue contributor. Despite this small improved performance, Ola Electric's shares closed 2.5 per cent lower on Friday at ₹72.67, below its IPO price of ₹76, indicating that investors remain cautious about the company's long-term prospects in the highly competitive Indian electric vehicle market.

On the contrary, Ola's market share has come down to almost 30 per cent, which was previously around 50 per cent. This drop in share can mainly be attributed to legacy manufacturers bouncing back with solid, reliable products, backed by a robust service network. To know how Ola faired last year in terms of sales compared to other manufacturers like TVS and Bajaj Auto, head to the link here.